1.4
This occurs when the interests of two stakeholder groups oppose each other, such as shareholders wanting higher dividends while employees demand higher wages.
What is Stakeholder conflict
This form of growth occurs when a business expands using its own resources, such as retained profits, without merging with another firm.
What is organic growth (or internal growth)?
The cost advantage that occurs when average cost per unit falls as the scale of output increases.
What are economies of scale?
What does Ansoff's matrix BMT focus on?
What are market growth strategies?
An organization that operates, produces, or provides services in at least one country other than its home country.
What is a multinational company (MNC)?
This group of internal stakeholders is primarily concerned with receiving fair wages, safe working conditions, and job security.
Who are employees?
A formal agreement between two or more separate businesses to collaborate on a specific project while remaining completely independent legal entities.
What is strategic alliance
Higher unit costs as a firm continues to grow.
What is diseconomies of scale.
Involves selling existing products into existing markets, typically by aggressive promotion or competitive pricing.
What is market penetration?
The term given to a country where a multinational corporation sets up operations outside of its home base.
What is a host country?
Unlike shareholders who own equity in a company, this group includes banks and financial institutions that lend money and expect repayment with interest.
Who are creditors (or lenders)?
When a business buys a license to trade under the name, logo, and business system of an established existing enterprise.
What is franchising?
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What is the average cost?
riskiest quadrant of the Ansoff Matrix, which requires developing brand new products for completely new, unfamiliar markets.
What is diversification?
A major potential drawback for host nations when MNCs extract profits and send them back to corporate headquarters rather than reinvesting locally.
What is profit repatriation of profit?
Unlike shareholders who specifically own equity in a company, this broader term describes anyone affected by or having a vested interest in the firm's decisions.
What is stakeholder
The integration of two firms operating at different stages of the production chain, such as a car manufacturer purchasing a tire factory.
What is vertical integration?
Large firms use sophisticated capital and machinery to mass-produce their products.
What is Technical Economies.
When Apple launched the Apple Watch to sell alongside iPhones to its existing loyal consumer base, it executed this Ansoff Matrix strategy.
What is product development?
The focus of MNCs in our unit.
What is on the host country?
visual tool used to analyze various people in the business who are internal or external influences based on two specific dimensions: their degree of power and their level of interest.
What is a stakeholder mapping grid?
Amalgamation of firms operating in the same industry.
What is Horizontal integration
Synergies is an advantage of this growth.
What is external growth
This Ansoff Matrix strategy seeks growth by selling an existing product range to entirely new customer segments, such as expanding overseas or targeting a different demographic.
What is market development?
Another term for MNCs
What is Transnational corporation?